Hi all,

I have been looking at the fundamentals since the start of the blood letting in the silver market of the past couple of days. With currency weakness in many areas in the world losing ground and of course faith in those currencies (Greece being only one of them) it would seem that Gold and Silver should be acting in an opposite fashion as to how they have. (O.T. - Can you imagine how the people of Greece will react when the masses figure out that the bail out paper will for the most part be going to Germany and France to cover those debts and to help keep Germany and France from reeling in the same direction of Greece)

The fiat monetary system and governments finances accross the world must be in absolute termoil if many are making a big run into the US$. So, having said that I will state that the big boys at JPM, GS, etc have really shaken the tree hard. They have banged out many weak hands in silver in particular. Yes, I believe firmly that JPM used their massive silver short to the max this go around. I think going forward we can expect more and more volatility and violent days like yesterday both on the down side and the upside.

My guess is that the investigation into JPM's big silver short on the COMEX will not add up to a whole lot. I think there was a fine levied already. I will look into that later. The reason I say that this investigation is nothing more than to put up a face and the perception of control and regulation is based on a number of things. Main one being of course that it is not in the interest of those who control government and government them selves. Bottom line, a monetary system that ties something of intrinsic value (Silver/Gold) in a non-fractional manner is the only way to control or regulate the creation of paper that represents currency. Neither those who control the Fed Reserve, big Investment Banks or Government want that.

What are some of the things that silver have going for it??? (in no particular order)

- Industrial/Medical uses continue to expand.

- Currency inflation/debasing value is happening at incredible rates accross the world Thus, you would think that Gold and Silver over the long term must simply increase in value over paper currency.

- Gold and Silver are widely accepted as currency accross the world (even written into their constitutions).

- Tough to really know but it looks like silver may be more scarce than gold. Been a while since I saw this but I think the WGC had estimated about 4-5 billion ounces of above groung gold bullion. The Silver Institute stated about 670 Million ounces of above ground bullion. These numbers are rough and do not include jewelry or coinage etc...

- COMEX looks to be very low in silver reserves in comparison to the amount of delivery slips coming in to them. Midas reported COMEX dealer inventory of 50.73 million ounces with delivery notices of 12.6 million ounces. Is a big short squeeze coming in JPM's direction???

- China has lifted the ban on the public owning PM's. This could become a massive demand for silver.

Bit of a rant, just some of my thoughts and humble opinions of the last couple days.

Deno G. (sorry for spelling errors)